The Fair Trade Commission has warned confectionery maker Chateraise, alleging that the company refused to receive products from suppliers in violation of the subcontract law.
On Thursday, the regulatory watchdog also urged the company, based in Kofu, Yamanashi Prefecture, to take action to prevent a recurrence of such a problem.
According to the FTC, Chateraise commissioned 11 companies to make packaging materials for its Western confectionery but did not receive some of the products even after the designated delivery dates.
As of Dec. 30 last year, the company had refused to receive goods worth ¥23.83 million, of which those worth ¥13 million should have been delivered more than a year before.
In addition, the company had, from December 2023 at the latest, suppliers store the goods it refused to receive without paying fees.
The FTC judged that these acts constitute refusal of receipt and unreasonable requests for provision of economic gains prohibited by the subcontract law.
The FTC recommended that Chateraise pay the suppliers the amounts equivalent to the order prices and storage costs of the products it did not receive.
According to its website, Chateraise had 1,045 stores in and outside Japan as of March 10 this year.
The company said that its understanding of the subcontract law was insufficient, pledging to build a fair and sound trading environment and strengthen its compliance with laws and regulations.
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